Durable Goods
Categories: Econ, Company Management
Everybody likes a durable good. Waaaay more appreciated than a durable bad. Just sayin'.
Durable goods are things that last three or more years, and are usually on the more expensive side. Think: computers, industrial equipment, cars, and airplanes.
Because durable goods don’t come cheap, an influx of, say, a bunch of new airplanes in the market can skew numbers in things like durable goods orders, an economic indicator...so analysts usually look at durable goods to make sure durable goods fluctuations are accounted for (and aren’t mistaken for something else going on in the economy).
The more durable goods that are bought, the better the economy is looking. When consumers and companies are feeling comfortable enough to buy cars and new capital equipment, it’s a good sign, since that stuff costs $$$. During lean times, people and companies are more likely to wait on buying those durable goods.